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Reliable Data Services (NSE:RELIABLE) Operating Margin % : 13.19% (As of Sep. 2023)


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What is Reliable Data Services Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Reliable Data Services's Operating Income for the three months ended in Sep. 2023 was ₹23.8 Mil. Reliable Data Services's Revenue for the three months ended in Sep. 2023 was ₹180.6 Mil. Therefore, Reliable Data Services's Operating Margin % for the quarter that ended in Sep. 2023 was 13.19%.

Warning Sign:

Reliable Data Services Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -11.3%.

The historical rank and industry rank for Reliable Data Services's Operating Margin % or its related term are showing as below:

NSE:RELIABLE' s Operating Margin % Range Over the Past 10 Years
Min: 8.28   Med: 12.88   Max: 18.07
Current: 10.31


NSE:RELIABLE's Operating Margin % is ranked better than
72.46% of 2752 companies
in the Software industry
Industry Median: 3.405 vs NSE:RELIABLE: 10.31

Reliable Data Services's 5-Year Average Operating Margin % Growth Rate was -11.30% per year.

Reliable Data Services's Operating Income for the three months ended in Sep. 2023 was ₹23.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹62.8 Mil.


Reliable Data Services Operating Margin % Historical Data

The historical data trend for Reliable Data Services's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Reliable Data Services Operating Margin % Chart

Reliable Data Services Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.71 14.61 8.28 13.52 9.97

Reliable Data Services Quarterly Data
Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.89 7.61 12.18 6.80 13.19

Competitive Comparison of Reliable Data Services's Operating Margin %

For the Information Technology Services subindustry, Reliable Data Services's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reliable Data Services's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Reliable Data Services's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Reliable Data Services's Operating Margin % falls into.



Reliable Data Services Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Reliable Data Services's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=72.588 / 728.266
=9.97 %

Reliable Data Services's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=23.823 / 180.622
=13.19 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Reliable Data Services  (NSE:RELIABLE) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Reliable Data Services Operating Margin % Related Terms

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Reliable Data Services (NSE:RELIABLE) Business Description

Traded in Other Exchanges
N/A
Address
C-70, Sector - 2, Noida, UP, IND, 201301
Reliable Data Services Ltd is an India-based company that provides IT and IT-enabled services to various banking, financial services, and other manufacturing industries in the field of back-office processing, front office follow-ups, and management services. The business segments comprises of which are Banking, Financial Services and Insurance and Non-Banking, Financial Services and Insurance. The Banking, Financial Services and Insurance segment makes majority of its revenue for the company. The company provides transaction processing services and payroll services as well.

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